DESCRIPTION
Provide reimbursement from the State for payment of developer fees in excess of 50 percent mitigation, as allowed by Proposition 1A. In the absence of reimbursement agreements, State funding apportionments may be reduced or districts must accept lower developer fees.
OBJECTIVE
Create win-win partnerships with homebuilders to ensure that funding is available when needed to construct new schools. Minimize local funding burden.
COMPONENTS
Reimbursement agreements may contain some or all of the following provisions:
- Timing of developer fee payments, including options such as Mello-Roos Community Facilities Districts
- In-lieu dedication of school sites and/or builder-constructed schools
- Application for State funding for 50 percent of the cost of required schools
- Form and distribution of State reimbursement among future homeowners, CFD property owners, and/or others
- Allocation of construction cost savings (if any) between district, homebuilder, and/or others
- Maximum developer fee per residential square foot when State funding is available
- Maximum developer fee per residential square foot in absence of State funding
RESULTS
Reimbursement agreements accelerate the payment of developer fees in order to leverage 50 percent State funding and ensure that schools can be constructed in a timely manner. This simultaneously maximizes State funding, minimizes local funding burden, and minimizes the need to increase developer fees.